Earlier this month, the Mexican government announced a broad strategy that includes regulatory, administrative, and institutional measures aimed at encouraging investment in the short term, particularly in the context of supply chain relocation, better known as nearshoring (the “Plan”).

The announcement represents a significant redesign of Mexico’s procedures for attacting investment by incorporating expedited authorization mechanisms, administrative simplification measures, and greater interagency coordination.

One of the central pillars of the Plan is the substantial reduction of regulatory friction. Notably, the government announced the creation of the Presidential Office for Investment Promotion and its Investment Committee, which will serve as a liaison to support investment projects and issue authorization certificates within a maximum period of 30 days, acting pursuant to Mexico’s National Law for the Elimination of Bureaucratic Procedures.

Further, the Plan establishes an approval mechanism based on a lack of administrative response, whereby if the permits or procedures required for an investment project are not resolved within 90 days, they will be deemed approved through an “affirmative ficta” mechanism under Mexican administrative law. On an exceptional basis, certain projects may qualify for immediate authorization, particularly those that:

  • Are located within designated “Wellbeing Poles”;
  • Exceed an investment amount of $2 billion Mexica pesos; or
  • Belong to strategic sectors.

The Plan also incorporates administrative simplification measures, with a particular emphasis on the digitalization and standardization of procedures. In Mexico’s energy sector, for example, nine separate procedures have been consolidated into a single digital process, and a unified digital file system is being implemented.

In the area of foreign trade, the government announced the creation of a Single Window for Foreign Trade Procedures, which will consolidate procedures currently handled by Mexico’s Tax Administration Service (“SAT”), the Department of Economy, and the National Customs Agency of Mexico. The platform will allow information interoperability and operational traceability through a single foreign trade file, a measure that is particularly relevant for companies operating under Mexico’s Manufacturing, Maquiladora and Export Services Program (“IMMEX”).”

Reshaping the Tax and Compliance Environment

Mexico’s Department of Finance and Public Credit and the SAT also announced measures intended to strengthen legal certainty in tax matters. Among the most relevant changes are:

  • Seeking to conduct only one comprehensive tax audit per fiscal year;
  • Applying the principle of non-retroactivity in tax audits;
  • Improving procedures for tax refund claims;
  • Simplifying taxpayer registration with the Federal Taxpayer Registry and the issuance of electronic signatures;
  • Strengthening the Mexican Taxpayer Defense Attorney’s Office (“PRODECON”);
  • Focusing audits on taxpayers presenting irregularities, rather than on compliant taxpayers; and
  • Increasing enforcement efforts against tax evasion schemes, particularly those involving fraudulent invoicing.

Finally, the government announced that PRODECON will now fall under the oversight of Mexico’s Ministry of Anti-Corruption and Good Government, with the objective of increasing transparency in the relationship between taxpayers and government authorities.

For investors and companies with operations in Mexico, this package creates significant opportunities, but it also highlights the need to review regulatory and tax compliance frameworks to fully benefit from an environment that prioritizes speed, efficiency, and traceability.